CHICAGO, June 26, 2012 /PRNewswire/ --Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List - Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Quiksilver, Inc. (NYSE:ZQK) and Avon Products, Inc. (NYSE:AVP).Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks:Warnaco Group Inc (NYSE:WRC) and Lancaster Colony Corp. (NASDAQ:LANC).To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92
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Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List of Stocks to Sell Now by 80% annually (+2% vs. +10%). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, Zacks told investors which stocks to sell or avoid.
Here is a synopsis of why ZQK and AVP have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:
Quiksilver, Inc. (NYSE:ZQK) announced second -quarter loss of 2 cents per share on June 7 which came behind the Zacks Consensus Estimate by 3 cents. The diluted earnings per share also fell by 122.22% on a year-over-year basis. The Zacks Consensus Estimate for the current year slipped 14 cents per share to 3 cents in the last 60 days. Next year's estimate also dipped 13 cents per share to 21 cents per share in that time span.
Avon Products, Inc. (NYSE:AVP) posted a first -quarter profit of10 cents per share on May 15, which came in 18 cents wider than the average forecast. The Zacks Consensus Estimate for 2012 fell to a profit of 94 cents per share from 95 cents over the past month with 3 out of 13 covering analysts slashed forecasts. Next year's forecasts slipped 1 cent to $1.17 per share in the same time span.
Here is a synopsis of why WRC and LANC have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;
Warnaco Group Inc (NYSE:WRC) first-quarter profit of 90 cents per share, posted on May 10, lagged analysts projections by nearly 2.17%. For 2012, the Zacks Consensus Estimate moved down 31 cents in the last 60 days as none out of the 10 covering analysts cut back on forecasts. The forecast for next year slid 33 cents to $4.61 per share in the same time span.
Lancaster Colony Corp. (NASDAQ:LANC) reported a third-quarter profit of 67 cents per share on June 6, that fell 14.10% short of the Zacks Consensus Estimate. The full-year average forecast is currently pegged at $3.26 per share, compared with the last 60 days projection of $3.47. Next year's forecast dropped 8 cents per share in the same period.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions" is available to provide this insightful background. Download a free copy now to prosper in the years to come at http://at.zacks.com/?id=93
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (2.8% versus +9.7%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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